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An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece

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  • Emvalomatis, Grigorios
  • Oude Lansink, Alfons G.J.M.
  • Stefanou, Spiro E.

Abstract

Subsidies on production have long been criticized for protecting producers from competition, and thus removing an incentive for efficient use of the resources. This study undertakes the examination of the impact of partially decoupled subsidies on the technical efficiency scores of cotton producers in Greece. The results indicate that compensatory area payments reduce the efficiency scores of the producers by diverting resources from products for which the subsidy is based on the area planted to the production of cotton, for which the aid is related to the volume of output.

Suggested Citation

  • Emvalomatis, Grigorios & Oude Lansink, Alfons G.J.M. & Stefanou, Spiro E., 2008. "An Examination of the Relationship Between Subsidies on Production and Technical Efficiency in Agriculture: The Case of Cotton Producers in Greece," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6673, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa107:6673
    DOI: 10.22004/ag.econ.6673
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    2. Bradfield, Tracy & Butler, Robert & Dillon, Emma J. & Hennessy, Thia, 2020. "The factors influencing the profitability of leased land on dairy farms in Ireland," Land Use Policy, Elsevier, vol. 95(C).
    3. Zdeňka Náglová & Tereza Horáková, 2017. "Position of the Bakery Enterprises in the Czech Republic According to Detailed Specification of the Businesses," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(5), pages 1719-1727.
    4. Maria Martinez Cillero & Michael Wallace & Fiona Thorne & James Breen, 2021. "Analyzing the Impact of Subsidies on Beef Production Efficiency in Selected European Union Countries. A Stochastic Metafrontier Approach," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1903-1923, October.
    5. Laure Latruffe & Yann Desjeux, 2016. "Common Agricultural Policy support, technical efficiency and productivity change in French agriculture," Review of Agricultural, Food and Environmental Studies, Springer, vol. 97(1), pages 15-28, June.
    6. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.
    7. Xinyao Wang & Dan Li & Yue Yu, 2022. "Current Situation and Optimization Countermeasures of Cotton Subsidy in China Based on WTO Rules," Agriculture, MDPI, vol. 12(8), pages 1-16, August.
    8. Minviel, Jean Joseph & Latruffe, Laure, 2014. "Meta-regression analysis of the impact of agricultural subsidies on farm technical efficiency," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182767, European Association of Agricultural Economists.
    9. Laure Latruffe & Hervé Guyomard & Chantal Le Mouël, 2009. "The role of public subsidies on farms’ managerial efficiency: An application of a five-stage approach to France," Working Papers SMART 09-05, INRAE UMR SMART.
    10. Skevas, Theodoros & Lansink, Alfons Oude & Stefanou, Spiro E., 2012. "Measuring technical efficiency in the presence of pesticide spillovers and production uncertainty: The case of Dutch arable farms," European Journal of Operational Research, Elsevier, vol. 223(2), pages 550-559.
    11. Bachev, Hrabrin & Koteva, Nina & Ivanov, Bojidar & Mitova, Dilyana & Boevski, Ivan & Terziev, Dimitar & Dimova, Nadejda & Dimitrova, Reneta & Marinov, Petar & Zvyatkova, Daniela & Sarov, Angel & Koste, 2021. "Холистичен Подход За Дефиниране, Оценяване И Подобряване На Конкурентоспособността На Земеделските Стопанства В България [A holistic framework for defining, evaluating, and improving the competitiv," MPRA Paper 111498, University Library of Munich, Germany.
    12. Tomislav Herceg & Iva Vuksanovic, 2017. "Technological progress in Croatian perennial agriculture," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 6(1), pages 18-32, May.
    13. Valentina Neganova & Aleksey Dudnik, 2018. "Improving the State Support of Agriculture in a Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 651-662.
    14. Khafagy, Amr & Vigani, Mauro, 2022. "Technical change and the Common Agricultural Policy," Food Policy, Elsevier, vol. 109(C).

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    Keywords

    Agricultural Finance; Crop Production/Industries; Production Economics;
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